Meat co-op dilemma
Meat processor Alliance Group's cash-strapped farmer shareholders face a dilemma - either pour more money into the co-operative or risk losing 100% ownership and control.
The quarterly payments have been made to the farmer-owned red meat co-op’s Platinum and Gold shareholders who supply 100% of their livestock to the company.
Farmers are paid an additional 10 cents per kilogram for each lamb, six cents/kg for a sheep, 8.5 cents/kg for cattle and 10 cents/kg for deer. The payments cover the period October-December 2018.
By committing all their livestock to the co-operative, Platinum and Gold shareholders also receive a range of other benefits including priority processing and free store stock facilitation.
David Surveyor, Alliance chief executive, said the loyalty payments reflect the value the co-operative places on consistent and committed supply.
“The interests of our farmers are at the heart of every decision we make,” he says.
Alliance’s focus is on creating prosperity for farming families. Surveyor says profits are delivered back to farmers or re-invested into the cooperative “so we can continue to improve our performance and lift returns to our shareholders”.
“We are investing in developing new markets and added value projects as part of our strategy to capture greater market value.”
